# How to Choose a Private AI Tool for Your Business

> How to choose the right private AI solution: business plans vs self-hosted models, five questions for vendors, and what major plans say about training.

Source: https://learn.ynteractive.com/content/blog/how-to-choose-a-private-ai-tool-for-work · Updated 2026-10-21 · Free from Stepthrough (https://learn.ynteractive.com)

Quick answer

To choose a private AI solution, decide what data it will touch, then pick the lightest option that protects it: a business plan of a mainstream assistant for most office work, or a [self-hosted](https://learn.ynteractive.com/content/glossary/self-hosting) model when data can't leave your systems. Ask every vendor about training, retention, access, admin controls and agreements. The free [ChatGPT data controls lesson](https://learn.ynteractive.com/content/chatgpt-data-controls-protect-client-data) helps.

Last updated October 21, 2026

[Take the free module →](https://learn.ynteractive.com/courses/ai-at-work/3)Module 3 of the free [AI at Work: Start Here](https://learn.ynteractive.com/courses/ai-at-work) course, about 10 minutes. No account needed.

By [Robert Breen](https://learn.ynteractive.com/content/about) · Published October 21, 2026 · Updated October 21, 2026 · 4 min read

AI Policy · Security · ChatGPT

"Private AI" means different things to different vendors. This guide sorts the options for small and mid-sized offices and lists the questions that separate a real answer from a marketing line.

## What does "private AI" actually mean?

Usually one of three things:

1. **A business plan of a public assistant**, such as ChatGPT Business or Enterprise, [Claude](https://learn.ynteractive.com/content/glossary/claude) for Work, [Gemini](https://learn.ynteractive.com/content/glossary/gemini) in Google Workspace, or Microsoft Copilot Chat signed in with a work account. Your data is handled under business terms, typically not used to train models by default.
2. **An API with strict retention**, where your own app sends data to a model provider under API terms, sometimes with [zero data retention](https://learn.ynteractive.com/content/glossary/zero-data-retention) by agreement.
3. **A self-hosted model**, an [open-weight model](https://learn.ynteractive.com/content/glossary/open-weight-model) running on your own servers or private cloud, so data never goes to an outside AI company.

Most offices need the first option. The second and third make sense for developers building their own tools, or for data that contract or law says can't leave your systems.

## How do I decide which option I need?

Start with your data, not the tool. Sort what the AI will see into levels such as Public, Internal, Confidential and Restricted, the four-level sheet built in the free [data classification lesson](https://learn.ynteractive.com/content/what-not-to-put-into-ai-data-classification). Then:

| Most sensitive data the AI will see | Usual fit |
| --- | --- |
| Public and internal: drafts, summaries, general questions | A business plan of a mainstream assistant |
| Confidential client data, under your policy's rules | A business plan with admin controls, plus clear rules on what may be pasted |
| Restricted data, or a contract that forbids outside processing | Self-hosted or a specially agreed setup, reviewed by your IT and legal advisers |

## Try it free, step by step

**Know What Never Goes into AI: a Four-Level Data Cheat Sheet using ChatGPT**. Sort office data into Public, Internal, Confidential and Restricted, take the Restricted part out by hand, then have ChatGPT redact a client email and catch the mix-up it makes. You do every step yourself in a practice copy of ChatGPT, it checks your work as you go, and “Do it for me” finishes any step you get stuck on. Free, and nothing touches your real accounts.

[Start the free lesson](https://learn.ynteractive.com/modules/ai-data-classification)

[Or read the full step-by-step guide](https://learn.ynteractive.com/content/what-not-to-put-into-ai-data-classification)

## What do the major business plans say about training?

Each vendor's own documentation says, as of October 2026:

- **ChatGPT Business and Enterprise:** OpenAI's help center says Business workspace data is excluded from model training by default.
- **Claude for Work:** Anthropic's privacy center says inputs and outputs from its commercial products, including Claude for Work and the API, are not used to train its models by default.
- **Gemini in Google Workspace:** Google's Workspace privacy hub says your content is not human reviewed or used for generative AI model training outside your domain without permission.
- **Microsoft Copilot Chat with a work account:** Microsoft's documentation says enterprise data protection applies and prompts and responses aren't used to train the underlying foundation models.

On personal plans the defaults are different. In personal ChatGPT, for example, the setting [Improve the model for everyone](https://learn.ynteractive.com/content/glossary/improve-the-model-for-everyone) decides whether your chats can be used for training. Vendors change terms, so read the current page before you decide.

## What five questions should I ask any AI vendor?

1. **Training:** Is our data used to train your models, by default or ever?
2. **Retention:** How long are prompts, files and chats kept, and can we delete them?
3. **Access:** Who at your company can see our data, and when?
4. **Admin controls:** Can we manage users, require [single sign-on](https://learn.ynteractive.com/content/glossary/single-sign-on), turn features off and see usage?
5. **Agreement:** Will you sign a [data processing agreement](https://learn.ynteractive.com/content/glossary/data-processing-agreement), and do you have an independent security report such as SOC 2?

If the answers are vague, or only in a sales deck, ask for the documentation. [How to Check If a Company Is SOC 2 Compliant](https://learn.ynteractive.com/content/blog/how-to-check-if-a-company-is-soc-2-compliant) covers reading the security report.

## Is a private AI tool enough to keep data safe?

No. The plan protects data after it is pasted. Your team's habits decide what gets pasted. Put both in place: an approved tool on a work account with the right settings, and a short policy on what may go in and who checks what comes out. The [data controls lesson](https://learn.ynteractive.com/content/chatgpt-data-controls-protect-client-data) ends with a one-page team AI policy you can copy.

## Key takeaways

- "Private AI" can mean a business plan, an API with strict retention, or a self-hosted model.
- Decide based on the most sensitive data the tool will see.
- Most offices are well served by a business plan of a mainstream assistant with admin controls.
- Ask every vendor about training, retention, access, admin controls and a signed agreement.
- Pair the tool with a policy on what staff may paste and who checks the output.

## Frequently asked questions

**Is ChatGPT private enough for client work?**

On a business plan with your company's approval and settings, many firms use it for client work with private details left out. A personal account with default settings is a weaker choice. Follow your own policy and any client contract terms.

**What is a self-hosted AI model?**

An AI model that runs on servers you control instead of a vendor's service. It keeps data in-house, but you take on setup, security, updates and cost, so it suits teams with IT support.

**Does private AI mean the vendor never sees my data?**

Not necessarily. Business plans usually limit training and access, but the vendor still processes your data to answer you. Read the retention and access terms to know exactly what happens.

**Do I need a data processing agreement?**

If you handle personal data for clients or work under privacy laws, a data processing agreement with the vendor is usually expected. Ask your legal adviser what your contracts require.

## Where can I go next?

Read [Is It Safe to Paste Client Data into ChatGPT?](https://learn.ynteractive.com/content/blog/is-it-safe-to-paste-client-data-into-chatgpt) and [How to Stop ChatGPT Training on Your Chats](https://learn.ynteractive.com/content/blog/how-to-stop-chatgpt-training-on-your-chats).

## Build it yourself, free

**ChatGPT: Keep Client Data Safe, Set Up Your Team's Data Controls in 10 Minutes**. A client asks if their files go into ChatGPT. Answer with confidence: set the data controls, memory, Temporary Chat and shared links, then hand your team a one-page AI policy. You do every step yourself in a practice copy of ChatGPT, it checks your work as you go, and “Do it for me” finishes any step you get stuck on. Free, and nothing touches your real accounts.

[Start the free lesson](https://learn.ynteractive.com/modules/chatgpt-data-controls)

[Or read the full step-by-step guide](https://learn.ynteractive.com/content/chatgpt-data-controls-protect-client-data)

## Free lessons in this post

- [ChatGPT: Keep Client Data Safe, Set Up Your Team's Data Controls in 10 Minutes](https://learn.ynteractive.com/content/chatgpt-data-controls-protect-client-data): A client asks if their files go into ChatGPT. Answer with confidence: set the data controls, memory, Temporary Chat and shared links, then hand your team a one-page AI…
- [Know What Never Goes into AI: a Four-Level Data Cheat Sheet using ChatGPT](https://learn.ynteractive.com/content/what-not-to-put-into-ai-data-classification): Sort office data into Public, Internal, Confidential and Restricted, take the Restricted part out by hand, then have ChatGPT redact a client email and catch the mix-up…

## Watch it in a free lesson: ChatGPT: Keep Client Data Safe, Set Up Your Team's Data Controls in 10 Minutes

### ChatGPT: Keep Client Data Safe, Set Up Your Team’s Data Controls in 10 Minutes: video walkthrough

Full walkthrough · 3:05 · with captions

A client asks if their files go into ChatGPT. Answer with confidence: set the data controls, memory, Temporary Chat and shared links, then hand your team a one-page AI policy. The whole lesson narrated step by step, recorded in Stepthrough’s simulated practice environment.

[Watch it with chapters and the full transcript](https://learn.ynteractive.com/content/chatgpt-data-controls-protect-client-data#watch)

From the free lesson [ChatGPT: Keep Client Data Safe, Set Up Your Team's Data Controls in 10 Minutes](https://learn.ynteractive.com/content/chatgpt-data-controls-protect-client-data)

## Related terms

Plain-English definitions, each with an example from a free lesson.

[Self-hosting](https://learn.ynteractive.com/content/glossary/self-hosting) · [Claude](https://learn.ynteractive.com/content/glossary/claude) · [Gemini](https://learn.ynteractive.com/content/glossary/gemini) · [AI incident response](https://learn.ynteractive.com/content/glossary/ai-incident-response) · [AI vendor risk assessment](https://learn.ynteractive.com/content/glossary/ai-vendor-risk-assessment) · [Chat export](https://learn.ynteractive.com/content/glossary/chat-export) · [ChatGPT data controls](https://learn.ynteractive.com/content/glossary/chatgpt-data-controls) · [Data minimization](https://learn.ynteractive.com/content/glossary/data-minimization)

[The full AI glossary](https://learn.ynteractive.com/content/glossary)

## Related prompts

- [AI data level sorting prompt](https://learn.ynteractive.com/content/prompts/ai-data-level-sorting-prompt): A copy-ready prompt that sorts your office's common documents into Public, Internal, Confidential and Restricted, with one AI…
- [ChatGPT memory sort prompt](https://learn.ynteractive.com/content/prompts/chatgpt-memory-sort-prompt): Paste your ChatGPT saved memories and sort each one: keep it, move it to custom instructions, or delete it because it holds…
- [IT incident report prompt](https://learn.ynteractive.com/content/prompts/it-incident-report-prompt): A ChatGPT prompt for an IT incident report: turn your log into a timeline, what was affected, how you contained it and what is…

[All free prompt templates](https://learn.ynteractive.com/content/prompts)

## Visual guides

The same ideas as quick visual guides: swipe through the slides, or read each one as text.

- [Myth: A New ChatGPT Chat Is a Private Chat](https://learn.ynteractive.com/content/visual/myth-new-chat-means-private): Myth vs fact: a new ChatGPT chat is saved like any other and memory can carry details. For a sensitive job, use Temporary Chat and remove names first.
- [ChatGPT Data Controls for Client Data in 5 Steps](https://learn.ynteractive.com/content/visual/ladder-chatgpt-data-controls): A step-ladder guide: turn off training, review shared links, decide on memory, use Temporary Chat and write the one-page rule, in 5 steps.

[All visual guides](https://learn.ynteractive.com/content/visual)

## Keep reading

- [ChatGPT Custom Instructions for Coding: 8 Rules to Copy](https://learn.ynteractive.com/content/blog/chatgpt-custom-instructions-for-coding): Stop retyping "only show what changed" in every chat. Eight short ChatGPT custom instructions for people who write code at work, and where they go.
- [ChatGPT Data Controls Settings: What to Change for Work](https://learn.ynteractive.com/content/blog/chatgpt-data-controls-settings-for-work): ChatGPT data controls settings for work: training, memory, shared links, export data and Temporary Chat. Where each one is and which to change.
- [ChatGPT Shared Project vs Shared Chat Link: Which to Use](https://learn.ynteractive.com/content/blog/chatgpt-shared-project-vs-shared-chat-link): A shared chat link shows one conversation; a shared project gives people your chats, files and instructions. See what each reveals before you send it.

[All blog posts](https://learn.ynteractive.com/content/blog) · [All free tutorials](https://learn.ynteractive.com/content)